MinRex Resources (ASX:MRR) has extended its exclusive option for an additional 3 months to purchase the Tancred Lithium Project, held by Tancred Resources in the ‘prospective’ Leinster pegmatite belt in Southeast Ireland.
This extension will allow assay results of samples collected from a recent field reconnaissance program to be received and for MinRex to complete the technical review of the lithium prospectivity of the project.
The key terms of the Tancred Project transaction include an option extension fee of $10,000 to extend the option until 28 September 2023, alongside a cash payment of $200,000 or the issue of fully paid ordinary shares in MinRex to the value of $200,000 at MRR’s 20-day VWAP share price in the lead-up to the deal.
MinRex will also issue the seller 20 million unlisted exercisable at $0.05 on or before 20 June 2026.
The company will also issue performance shares in MinRex to the value of $1 million at the 20-day VWAP share price for the period leading up to the reporting of an inferred JORC Resource of 5 million tonnes at a minimum of 1% lithium oxide, with the boundaries of any 1 or more of the Tancred Project tenements reported in accordance with the JORC Code.
Additionally, MinxRex will issue performance shares to the value of $2.5 million at the 20-day VWAP share price on the completion of a bankable feasibility study or asset sale.
During the extension period, MinRex has an exclusive right to conduct due diligence on the Tancred Lithium Project, during which time the company may at its complete discretion seek such shareholder, regulatory, and third-party approvals as necessary to complete this acquisition.
Commenting on extending the exclusive option, MinRex Resources Managing Director Robert Boston says: “MinRex is pleased to extend the option over the Tancred Project whilst we await results of the field reconnaissance samples and while also exploring partnering opportunities with other lithium explorers over the mineral belt.”
“MinRex is pleased to extend the option over the Tancred Project … while also exploring partnering opportunities with other lithium explorers over the mineral belt”
According to the company’s latest quarterly report, as of 31 March 2023 MinRex had $12.42 million cash at hand.
MinRex Resources is an Australia-based emergent battery metals explorer with lithium-tin-tantalum projects in the Pilbara region of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: MinRex Resources Ltd